Fuelled by an expanding vehicle fleet and solid investment income, Manitoba Public Insurance reported net income of $64.8 million for the first quarter of 2007.

For the three months ended May 31, 2007, earned revenues increased by $10.5 million over the same period last year as the number and value of vehicles insured increased. Investment income for the same period was also up $10 million over last year to $66.1 million.

Barry Galenzoski, Vice-President of Corporate Finance and Chief Financial Officer, said claims costs for the first three months increased $8.1 million to $173.2 million while the number of claims reported by Manitobans during the quarter decreased by 3,000 to 60,613.

Galenzoski said that physical damage claims increased by $3.5 million due mainly to a 9.5 per cent increase in the average cost per claim. Injury claims rose by $2.7 million, reflecting an increase in the cost of Personal Injury Protection Plan coverages.

“We’re pleased with the first quarter results,” said Galenzoski. “At the same time, rising claim costs are a reminder to motorists that they influence their rates through their driving behaviour.”

During the quarter the corporation mailed cheques to policyholders totalling $59.8 million for a Basic premium rebate ordered by the Public Utilities Board (PUB). This was the third time in the past five years that Manitobans have received rebates totalling $200 million.

Traditionally, Manitoba Public Insurance generates a profit in the first two quarters of the fiscal year, which is then offset by seasonal increases in claims costs during the winter months.

In June, the corporation applied to the PUB for approval of its 2008/09 rates. The application proposes no increase in overall premium revenue, which would extend rate stability for Manitobans beyond a decade. The PUB is expected to rule on the application in the fourth quarter of the fiscal year.

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Contact:
Media Relations, Manitoba Public Insurance
(204) 985-7300 or 1-888-554-9549 (toll-free in Manitoba)